Abbeville Fixture Company manufactures faucets in a small manufacturing facility

Question

Abbeville Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 70 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:

Required:

a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places.

b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Round your answers to the nearest whole dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Standard wage per hour $13.2 Standard labor time per faucet 20 min. Standard number of lbs. of brass 1.7 lbs. Standard price per lb. of brass $9.75 Actual price per lb. of brass $10 Actual lbs. of brass used during the week 11,031 lbs. Number of faucets produced during the week 6,300 Actual wage per hour $13.6 Actual hours per week (70 employees × 36 hours) 2,520 hrs.

Explanation / Answer

a. Standard cost per unit

b. Materials Variances:

c. Direct Labor Variances:

Direct Material Standard Cost per Faucet $ 16.58 Direct Labor Standard Cost per Faucet $ 4.40 Total Standard Cost per Faucet $ 20.98

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.